Hi Austin,
You can refinance a reverse mortgage and it makes sense to refinance when the value of your home increases or there is a drop in the interest rates.
Murphy
You can refinance a reverse mortgage and it makes sense to refinance when the value of your home increases or there is a drop in the interest rates.
Murphy
Hi Austin,
Welcome to Mortgagefit Forums.
A reverse mortgage can be refinanced as the value of your home increases in the market. There are certain factors like when you grow older and your house appreciates in market value and/or interest rates are lower than your current HECM, increases your credit line than what it is.
But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it.
So, when you consider refinancing your reverse mortgage you must look both at the increase in your credit line and the new cost due to refinance. Check with the lenders for the new credit line and the cost involvement.
If you find that the refinance costs are lower than your credit line then it is worth to refinance otherwise it won't be wise to go for it.
God bless you.
For MortgageFit,
Samantha
Welcome to Mortgagefit Forums.
A reverse mortgage can be refinanced as the value of your home increases in the market. There are certain factors like when you grow older and your house appreciates in market value and/or interest rates are lower than your current HECM, increases your credit line than what it is.
But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it.
So, when you consider refinancing your reverse mortgage you must look both at the increase in your credit line and the new cost due to refinance. Check with the lenders for the new credit line and the cost involvement.
If you find that the refinance costs are lower than your credit line then it is worth to refinance otherwise it won't be wise to go for it.
God bless you.
For MortgageFit,
Samantha
"But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it."
But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it.
But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it.
I have one doubt. Is selling the property, to repay the reverse mortgage loan, the only option left for the heirs of the borrower?
Hi Tracy,
No, that's not the only option. The heirs can repay the money by refinancing the reverse mortgage with a traditional forward mortgage.
They can even use other assets for it.
Feel free to ask if you have more doubts.
God bless you.
For MortgageFit,
Samantha
No, that's not the only option. The heirs can repay the money by refinancing the reverse mortgage with a traditional forward mortgage.
They can even use other assets for it.
Feel free to ask if you have more doubts.
God bless you.
For MortgageFit,
Samantha
My mom has a reverse mortgage, however the market value of her home has decreased. is there anyway for her to refinance he loan based on the current value of her home?
Hi Carolyn,
It is good to refinance a reverse mortgage only in certain cases like increase in value of your property, lowering of interest rate or the increase in maximum lending limit. While refinancing a reverse mortgage, make sure that you compare the amount of benefit and the cost of the loan. If the amount of benefit received is twice the cost to refinance, then it would be a good idea to go ahead with the deal.
It is good to refinance a reverse mortgage only in certain cases like increase in value of your property, lowering of interest rate or the increase in maximum lending limit. While refinancing a reverse mortgage, make sure that you compare the amount of benefit and the cost of the loan. If the amount of benefit received is twice the cost to refinance, then it would be a good idea to go ahead with the deal.
hi Carolyn,
Refinancing your Mom's reverse mortgage would only be possible if there is enough equity to do so. Just because the home value has dropped does not mean she wont be able to refinance. It will depend on what she owes and what her home is worth. Also, if she did her first reverse mortgage when the lending limits were lower, it might be very possible to refi.
Best Regards,
Refinancing your Mom's reverse mortgage would only be possible if there is enough equity to do so. Just because the home value has dropped does not mean she wont be able to refinance. It will depend on what she owes and what her home is worth. Also, if she did her first reverse mortgage when the lending limits were lower, it might be very possible to refi.
Best Regards,
>>is there anyway for her to refinance he loan based on the current value of her home?
Check it out and see. Provide a Reverse Mortgage Loan Officer with your Mom's most recent reverse mortgage mortgage statement, your Mom's birthdate, and the value of the house, and the Loan Officer will quickly be able to inform you if it'd make sense to refinance the existing Reverse Mortgage with another Reverse Mortgage.
Check it out and see. Provide a Reverse Mortgage Loan Officer with your Mom's most recent reverse mortgage mortgage statement, your Mom's birthdate, and the value of the house, and the Loan Officer will quickly be able to inform you if it'd make sense to refinance the existing Reverse Mortgage with another Reverse Mortgage.
My mother took out a reverse mortgage about 8 yrs ago. She has a adjustable rate. We are looking to refinace to get a fix rate and stop all the fees and intrest that is growing. Can this be done?
No. Every month an interest charge is incurred against the outstanding balance of a Reverse Mortgage, regardless of whether the interest rate is fixed or adjustable.
Right now your Mother can refinance her variable interest rate into a fixed interest rate, and the fees will be zero or very low. But the interest charge will always be there.
Right now your Mother can refinance her variable interest rate into a fixed interest rate, and the fees will be zero or very low. But the interest charge will always be there.
My husband and I got a reverse mortgage about 6 years ago and my husband passed away 3 years ago. I owe about 55,000 on my home and I pay the interest on the reverse mortgage every month. I am thinking that I will be farther ahead if I refinance. I have no other bills and my crdit is excellent. My income is 1500.00 a month with 27,000 in savings. Do you think that this is wise?
You won't know if it makes sense until you've reviewed how the different programs would work if you refinanced. To see if it makes sense, I'd need (or any other Reverse Mortgage Loan Officer would need) a copy of your latest Reverse Mortgage statement, and your birthdate. That'll enable me to run your scenario, and provide you with quotes from the different programs.
What do you mean when you say you pay the interest every month. Are you writing a check to the Lender each month?
What do you mean when you say you pay the interest every month. Are you writing a check to the Lender each month?
I am 75 years old and i took out a reverse mortgage 3 years ago. My wife is now 62 years old can i refinance to put her name on the mortgage.
Yes, Arthur, it's a good idea now that she's eligible. However, there has to be enough equity in the property to qualify. I'll be able to quickly see how it'd work for you if you'd provide me your latest statement, and let me know both of your birthdates. You can contact me at www.RaymondDenton.com